IDPM FINANCIAL DIARIES COVER SHEET FORMAT India: Rural Interview taken by: Sushil Kumar date: 18th October 2001 Category: Better off Initial wealth

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1 IDPM FINANCIAL DIARIES COVER SHEET FORMAT India: Rural Interview taken by: Sushil Kumar date: 18th October 2001 Category: Better off Initial wealth ranking: Better off Code: KKP04 Site: Kushphara Principal respondent(s): Mr. C Caste: Harijan C is an active leader of BAMSEF, the grassroots movement of the Bahujan Samaj Party (BSP) and is currently president for the Meja Road constituency. He plans to become more active and an MLA after retirement. He is a middle school teacher in a government junior high school in Sajee village 7 km from Kushphara. He has had this job for the last 32 years. He is educated to 12 th Std with BTC. His wife was a Gram Sabha member before the June 2000 elections (on reserved women s seat). C pressured her to stand again but she refused saying it was useless: she stated she was unable to play a productive role, and the administrative responsibilities troubled her and wasted her time. C s life has been on an extraordinary upward trajectory. He was born in Sansarpur village (20 km from Koraon) where his father was a landless labourer. When he was eight years old, his father died and C was shifted to his uncle s (mama) in Kushphara. C continued his education with the support of his uncle and scholarships. He cleared 12 th Std and started teaching in a mission school in Belchai village. After seven years, he cleared his BTC and secured a teaching position with the UP Government. From a landless background, C was given 5 bigha of poor quality land by UP Government scheme in Belchai village in He sharecrops this out. In Mar 2000, he purchased 2.5 bigha fertile land in the village for the first time but it came under dispute and he was forced to spend a huge amount of time & money over the next 10 s securing its possession. Other than this, the higher-education of his sons is by far his most significant expense. He purchased the land because he realised its investment potential (watching Kushphara s land prices increase year by year) and wanted to relieve the family s need to purchase grain regularly. C has good relations with colleagues and several friends who provide him substantial loans interest-free. Combined with a handful of shops that provide goods on credit regularly, these contacts enable him to raise money for investment and smooth his expenditures when he s spent all his salary. His focus is in building up fixed assets as well as cash-based security (in the form of LIC policies) for his two sons, although he admits the latter was taken to evade tax more than anything else. As a wealthy Harijan, C faces some jealousy from his own clan but also plays the role as patron to those of his caste and other backward castes who need help to take opportunities in education or protect themselves against elite interests. He s tough on the poor, saying that the reason they stay there is because they risk others money, not their own, they beg with one hand and try to trip up the donor with another and they seek always to live like rich men when they have little. He is frustrated that he more often incites jealousy than acts as a role model to people who see his sons on their scooters as theirs sweat in the field.

2 1. Initial household profile: Name Relationship to HH Age Education Main Economic Activities C Self th Std/ Middle school BTC teacher, GoI Kamala Devi Wife 40 Illiterate Runs the house Arvind Kumar son 22 MA Pursuing Masters Pushpa Devi wife 20 8 th Std House wife Amit Kumar Grandson 04 - Ajay Kumar Grandson Ajay Kumar Son 18 Graduate Pursuing BA Gyan Mathi Wife th Std House wife Manju Grand daughter 12 6 th Std Attends school Other Economic Activities 2. Significant changes to household profile during research year: Arvind has now started studying in 1 st Standard. 3. Residence: C grandfather (nana) acquired the homestead land from the government and he inherited it through his mother. 4. Tenure: Owner-occupier. No tenants. 5. Support networks: C relies a lot on colleagues and special friends who can advance him significant sums free of interest. By relative terms and within his own clan and caste community he is wealthy and plays a role as patron and helper to others from low caste backgrounds who need help in reaching opportunities. This perhaps also reflects his political interests. 6. Public entitlements: Above Poverty Line Ration Card holder C got his job through a reserved seat as an SC candidate (and also a special push through personal contacts). But the system was less competitive then and he was not required to take an examination to enter. His sons may have got through college on reserved basis but the competition in those colleges they attended is also not high. 7. Food habits: The family eats well and meat twice ly (although wife is vegetarian and a follower of Lord Siva). They do not adjust their food but generally have a steady income flow in any case. 8. Significant assets: Asset type Description Value (if known or estimated) Homestead Land 8 bisa land with hand pump Farm land (state if irrigated) 5 bigha semi-fertile land in Belchai village 8 km from KP sharecropped out Home (equipment, furnishings etc) Permanent brick house, 1 scooter, 2 bicycles, 2 small B&W TVs, cassette player, ceiling fan, 2 table fans Machinery - 2 Q wheat/ pulses received only

3 Livestock - Jewelry etc N/a 9. Significant changes to assets during research year: Mar 00 C purchases 2.5 bigha fertile land from a widow of own caste in village for Rs.125,000 (managed from his own savings, rs.40,000 of which in matured fixed deposit). In Aug 00 members of her clan/ family opened a dispute on the purchase. From Oct 00 to Jul 01 he attends regular hearings in Meja Judiciary. He eventually wins the case but the plaintiff then carries it to Allahabad. Late Sept 00 C purchases a buffalo for Rs Income pattern: estimated annual income over research year: Rs.84,700 Name Income source Frequency 1 Scale Comments C Middle school teacher Mthly salary Rs.6500 No sick or holiday pay; sometimes paid late Family Paddy farming Not sold 2 Q Very pleased with paddy crop Family Wheat farming Not sold 6 Q Family Sharecropped paddy Not sold 3 Q harvest Ajay Kumar Doctor s apprentice 2-3 days/ wk Rs.20/ day For experience only Arvind Kumar Teacher, local schools Mthly Rs.500 Madrasa, Koraon (from Jul 01). For experience not money 11. Expenditure pattern: Expenditure item Scale Comments General expenses Rs.420/ Including fuel & 2 large grain purchases for consumption Housing Rs.7,200 4 entries for building materials; on-going extension of existing brick house to create more space for sons, their families and guests. Clothing Rs entries. Mostly taken on credit (see Goods bought on credit) Education Rs.30,000 Rs.1000/ to each sons for general expenses to pursue studies; other 5 entries entrance & exam fees, books Health Rs.6500 Mostly for d-in-law s family planning operation (Rs.4000) mid 00; other 3 entries sickness of various family members Travel Rs.170 To bring d-in-law from parental home Festivals & Rs entries for various festivals ceremonies Farm investment Rs.2500 Mostly for newly purchased fertile land (self-managed); Rs.500 for his share of semi-fertile land in other village share-cropped out Legal fees for disputed land Rs.6000 Since purchasing 2.5 bigha of fertile land in KP from a widow, Chas faced mthly legal charges from relatives of the widow who claim ownership of land. Through research year he pursues case in district court & wins it in Jul 01 after which the plaintiff takes it up to Allahabad High Court Transport fuel & Rs entries for bicycles & scooter maintenance Gifts Rs.500/ yr C regularly helps poor students out with their fees & does not expect the money to be returned 1 In the case of farm income, this column refers to frequency of grain sales made (or if grain is not sold at all this is noted)

4 12. Financial services/devices used during research year: Type Instances Total Value Comments (Range) Interestfree loans taken 7 Rs.500- Rs.10,000 From friends & colleagues (teachers) towards purchase of a plot of land (Rs.10,000 of which Rs.2000 o/s) & for general expenses when cash is short, all repaid. Rs.5500 advanced by LIC agent when C Wage advance taken Groceries on credit Goods bought on credit Interestfree loans given Bank savings account Life insurance 13. Cheating: None can t pay (Mar 01). Rs.600 in grain from neighbor 1 Rs.1200 C uses student fees in his custody to bridge expenses, repaid within Mthly Regularly Rs.300/ Rs.500/ 4 Rs.700- Rs Rs.3000 balance (Aug 01) From single shop where he has average. o/s balance of Rs.1000 For clothes from 3 shops in Koraon: ready-mades & cloth To friends and poorer colleagues (driver) & one ST student (which will not expect back); partially repaid, relaxed about terms. Estimates Rs.5000 o/s to several people by research end. In KGB Koraon through which receives salary (less Rs.3000 or so kept in house & passed to sons), then draws down over. Uses as current account rather than savings. 3 Taken to save on income tax, first under own name in 1985 & then one each for sons in Mar 00. Maturity of 12 Rs.100,000 each. Approached by LIC agent. 14. Comments on financial services and devices: In spite of wealth status and bank account, C regularly borrows from friends to manage his cashflow rather than going to bank account because of convenience. His highest balance in his current account was Rs.25,000 4 years ago but he withdrew it all for the operation of his daughter-in-law Chas no interest in accessing government loans or other schemes (although he s aware of Krishan Credit Card). He is self-sufficient and would hope always to remain so. [Nonetheless he d happily give a bribe to get his sons in to good jobs.] He s been a member of PACS Society for years more for political than financial interests, but has never borrowed even now he has more land he thinks it s unlikely that he ll use it and would prefer to avoid the bureaucratic hassle. Given his political ambition for the future he ll likely maintain his membership since it helps one to achieve influence and to keep political options open for making future alliances and paths of influence. C is more oriented towards fixed asset building than cash-based savings (and even his 3 LIC policies were motivated more by tax breaks than the need for long-term cash security). He generally maintains a high standard of living and faces regular lump sum expenses related to health, marriage, education etc. and in this way does not have enough spare cash to invest in more savings. He set up a recurring deposit account in the Post Office 8 years ago Rs.100,000 maturity after 6 years). But after 3 years C broke it since he was impatient for the money to build his brick house. He is neither aware of group financial arrangements at work (e.g. AsCA) nor of new generation deposit schemes.

5 Chas a relaxed approach to the loans he gives out, influenced perhaps by his political leanings and humble origins. If it was my money it ll come back he says, suggesting that if it is not returned he is repaying a debt in a former life. 15. Recording financial service transactions: He keeps some records of his credit with shops and he keeps vouchers carefully. 16. This year compared to previous years: end of format